Warren Buffett Lost to the Index Fund? The $668,000 Surprise

Apparently, Warren Buffett's final stock tip is: Do not try to be Warren Buffett. And the recent numbers make his advice look annoyingly sensible. I compared Berkshire Class B shares with an S&P 500 fund, including reinvested dividends through yesterday's close. $1 million invested one year ago grew to about $1,038,000 in Berkshire. In the index fund, $1,164,000. The simpler choice finished roughly $126,000 ahead. That is an expensive way to receive a complimentary box of See's candies. Over 5 years, it's nearly a tie, about $1,840,000 in Berkshire versus $1,843,000 in the index. After 5 years of reading annual reports and telling people what free cash flow means, the index investor made an extra $2,800 by ignoring you. Over 10 years, Berkshire grew to roughly $3,506,000. The index fund reached $4,174,000. The difference? Approximately $668,000. You could spend 10 years analyzing stocks or 10 minutes buying the index and the remaining 9 years, 11 months, and 29 days developing a personality.